Can’t find renters for our 3 bedroom in a rural community: Should I put it on airbnb?

Upstate New York, New York
Marketing Your Property
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Can’t find renters for our 3 bedroom in a rural community: Should I put it on airbnb?

Christian Gibbs
Member since 2022 · 32 posts · 14 votes

Hi everyone-

We haven’t been able to get renters for our 3 bedroom, 2 bath property in Barryville, NY

Now that we are entering into November we are worried that it will be vacant for the winter.

Property manager has mentioned AirBNB / STR as an option but with property being empty for 4-5 months now ( long story - last tenants left it in shambles). we are debating whether to sell it as funds are scarce.

I’m currently using zillow and posting on FB.

Any other resources anyone can recommend for a rural community ?

Thank you! Love BiggerPockets! 

Christian

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Andy EdgemonPro Member
Member since 2023 · 28 posts · 18 votes
1y

Sounds like time to look for a new property manger. Basically stealing your money. I look at it like this, if the place is vacant and they aren't bringing tenants in, but still want money plus charging you a boat ton for "repairs" see you later. Mid term and STR is a good option but you will have to furnish it, and do not go on the cheap route from IKEA or something that will break and you will have to replace it again anyway.

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  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    1y

    Chiristian MTR is an option also? 

    1Reply
  • Christian Gibbs
    OP
    Member since 2022 · 32 posts · 14 votes
    1y
    Quote from @John Mason:

    Chiristian MTR is an option also? 

    yes definitely an option .Right now it’s unfurnished however .  Thanks for feedback . It’s kind of a seasonal area ( close to Delaware River , rafting etc ).
    There is skiing near by though for winter but the tourism definitely slows down in winter.
    There are a couple hospitals within 30 minutes though so could be a good option.


    0Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    1y

    Christian this may help give more perspectives

    https://www.biggerpockets.com/forums/925/topics/1145785-begi...

    Also maybe a good idea to touch base with Property Management companies and Realtors who

    do MTR placements, I know that you have to pay them a  fee but 85 %  is better than 0% , am I right?  

    I use Facebook groups a lot but vet the contacts  that I find there  with caution..

    1Reply
  • Christian Gibbs
    OP
    Member since 2022 · 32 posts · 14 votes
    1y
    Quote from @John Mason:

    Christian this may help give more perspectives

    https://www.biggerpockets.com/forums/925/topics/1145785-begi...

    Also maybe a good idea to touch base with Property Management companies and Realtors who

    do MTR placements, I know that you have to pay them a  fee but 85 %  is better than 0% , am I right?  

    I use Facebook groups a lot but vet the contacts  that I find there  with caution..

    we do have a property manager at moment .
    She has had no luck yet finding viable qualified tenants unfortunately . 
    She also has an unorthodox way of charging .
    While  we were getting the property ready after last tenants ( they left it a shambles ), she charged $500 a month. She realizes after we paid her and contractors she hired over $5,000 to get it painted , cleaned etc that we are out of money and she agreed to not charge us anymore but is still somewhat helping us and showing to potential renters .
    We have discussed different terms as I told her from her on out we can’t afford the monthly rate anymore . 
     Might be time to look at other options ..
    We have good communication and they are very knowledgeable but might be over extended working on other properties .

    0Reply
  • Andy EdgemonPro Member
    Member since 2023 · 28 posts · 18 votes
    1y

    Sounds like time to look for a new property manger. Basically stealing your money. I look at it like this, if the place is vacant and they aren't bringing tenants in, but still want money plus charging you a boat ton for "repairs" see you later. Mid term and STR is a good option but you will have to furnish it, and do not go on the cheap route from IKEA or something that will break and you will have to replace it again anyway.

    4Reply
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    1y

    Barryville is a small town with limited sources of income. It is hard to find tenants in an area like this. The tenants in this area often trash the place because they are lower income tenants. You should have sold this place a long time ago. Now, you are entering winter and hardly anyone will want to buy or rent from Dec - April. You should be focused on price. Renting as a vacation rental might work during hunting season but there really isn't much to do there that would attract vacationers in the winter. You should sell!

    [email protected]239-339-3969
    Bartomeo Property Management4.7150 Reviews
    WebsiteView Page
    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    1y

    The only reason for a property to sit that long is price. I see one house for rent and assume it must be yours. 

    What is better? $1500 a month, or a vacant house that freezes up this winter and costs you $30,000 to renovate?

    Drop your price. Rent it cheaper for 4-6 months to get through the winter, then rent it for a higher price or sell it in the spring.

    I recommend selling because you don't have a good property manager and the market is obviously not strong there.

    The DIY Landlord Book4.7247 Reviews
    WebsiteView Page
    2Reply
  • Christian Gibbs
    OP
    Member since 2022 · 32 posts · 14 votes
    1y

    Thank you Andy-

    we are currently done with the repairs  and theu agreed to waive her their  as of now and is not charging us any money as she realizes she hasn’t been able to rent it .

    Also there is no contract ,  which after reading more and more on property managers is essential. However , she has been fair in agreeing to waive any fee of any sort right now while it empty.

    What is the incentive for property managers to get a tenant placed?

    I’ve read some property managers charge a fee equal to one months rent for placing a tenant .Is this standard?

    While others just stick to the percentage fee.

    I appreciate your feedback 

    Thanks again-

    Christian 

    0Reply
  • Michael DiossaPro Member
    Investor · RI · Member since 2023 · 192 posts · 163 votes
    1y

    Hi Christian! Definitely tricky situation to be in for sure.

    Winter is always the toughest time to rent and to be fair, it does seem like your PM is trying to get it rented. Things happen and with constant economic changes somethings are out of ones control.

    Price reduction is definitely the first option. It seems like there is interest but just not from someone qualified. 

    Another option (if not done so) is to remove the listing for 48 hours and then repost it. This can help 1- Bring your listing back on the first page as it could be buried and 2- some prospects might get weary seeing a property that says listing for how so many days.

    Selling is also a good option if needed.

    regarding "I’ve read some property managers charge a fee equal to one months rent for placing a tenant .Is this standard?" Yes most charge full rent if it is only being rented out and not managed.

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Christian Gibbs appears you're throwing good money after bad:(

    How did you come to own this house?

    Recommend you do a LOT of research on both rental and sales markets to figure out your best options. 

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
    WebsiteView Page
    1Reply
  • Christian Gibbs
    OP
    Member since 2022 · 32 posts · 14 votes
    1y
    Quote from @Drew Sygit:

    @Christian Gibbs appears you're throwing good money after bad:(

    How did you come to own this house?

    Recommend you do a LOT of research on both rental and sales markets to figure out your best options. 


    0Reply
  • Christian Gibbs
    OP
    Member since 2022 · 32 posts · 14 votes
    1y
    Quote from @Drew Sygit:

    @Christian Gibbs appears you're throwing good money after bad:(

    How did you come to own this house?

    Recommend you do a LOT of research on both rental and sales markets to figure out your best options. 


     It was our first house that we bought in 2016 while we had a rent stabilized apartment in NYC. It’s tripled in value and with a 4.25% interest rate it’s hard to let it go. We’ve had renters in it for most of the time after we moved out in 2020 . Just at a slow period now . We lived there during Covid and it was great during that time and as a second home  . Also there is a Camp Fimco going in down the hill that has a water park . However the town is fighting it and half the town prefer it to stay an idyllic river getaway in the Western Catskills which I understand . 

    It’s 2.5 hrs from nyc and 20 minutes from the original Woodstock / bethel woods. 

    But I hear ya . My wife would agree with you . She wants to take the profit and pay capital gains and the take the remaining ! and throw it at our principle on our SD property.

    I’d prefer to 1031 the property or Air B and B it .

     We became accidental landlords when  we decided to move back  to San Diego. 

    Learning as we go since we had the house anyways .

    With long drives I discovered Bigger Pockets and it has lit a fire under  my tuckus to get more properties and keep the ball rolling 

    Thanks for the advice -

    More data analysis and research for whatever we 1031 into next will definitely be a priority .

    Best-

    C. Gibbs


    0Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    1y

    Christian  I would highly recommend Dealcheck free version

    https://dealcheck.io/

    But make sure you give all estimates from tools  a  margin of error.

    1Reply
  • Christian Gibbs
    OP
    Member since 2022 · 32 posts · 14 votes
    1y
    Quote from @Adam Bartomeo:

    Barryville is a small town with limited sources of income. It is hard to find tenants in an area like this. The tenants in this area often trash the place because they are lower income tenants. You should have sold this place a long time ago. Now, you are entering winter and hardly anyone will want to buy or rent from Dec - April. You should be focused on price. Renting as a vacation rental might work during hunting season but there really isn't much to do there that would attract vacationers in the winter. You should sell!


    1Reply
  • Christian Gibbs
    OP
    Member since 2022 · 32 posts · 14 votes
    1y
    Quote from @Michael Diossa:

    Hi Christian! Definitely tricky situation to be in for sure.

    Winter is always the toughest time to rent and to be fair, it does seem like your PM is trying to get it rented. Things happen and with constant economic changes somethings are out of ones control.

    Price reduction is definitely the first option. It seems like there is interest but just not from someone qualified. 

    Another option (if not done so) is to remove the listing for 48 hours and then repost it. This can help 1- Bring your listing back on the first page as it could be buried and 2- some prospects might get weary seeing a property that says listing for how so many days.

    Selling is also a good option if needed.

    regarding "I’ve read some property managers charge a fee equal to one months rent for placing a tenant .Is this standard?" Yes most charge full rent if it is only being rented out and not managed.

    Thanks Michael for the feedback .

    Following so many of  the Bigger Pockets stories and podcasts has led me down the path of “ Never sell!” but I’m starting to reconsider .
    Eating the Capital Gains will hurt a bit but we can apply the profit made towards some tax debt as well and then apply more $ to our primary condo out here and get relief of the PMI.

    OR do a 1031 .
    However, most people say an intermediary is necessary .I need to do research on how much someone charged for a 1031 . Furthermore  once the 1031 intermediary get their cut and you also pay two sets of closing costs ( buyers now have to pay closing costs in some states ) as opposed to just one closing cost ( if not doing the 1031) it might be a “half a dozen vs 6 of the other “ scenario .

    Also one of the turn offs to the 1031 exchange is the interest rate will be much higher with todays rates especially since we would have to get an investment property loan which are higher than “ primary residence “ loans ..

    Will probably lower the rent asap ( have one more showing ) and then put it on the market .

    Thanks for the great advice 
    Christian


    0Reply
  • Michael Carter
    Real Estate Agent · Syracuse NY · Member since 2024 · 12 posts · 8 votes
    1y

    Looks to me like Barryvilles location is really only suited for STR. A lot of MTR tenants will prefer to be close to where they're working so they can just work and go home to sleep. Scranton and Middletown look like the closest small cities and they're both an hour away. But STRs will be excited to get away from everything, spend time on the river and nearby skiing!

    1Reply
  • Christian Gibbs
    OP
    Member since 2022 · 32 posts · 14 votes
    1y
    Quote from @Michael Carter:

    Looks to me like Barryvilles location is really only suited for STR. A lot of MTR tenants will prefer to be close to where they're working so they can just work and go home to sleep. Scranton and Middletown look like the closest small cities and they're both an hour away. But STRs will be excited to get away from everything, spend time on the river and nearby skiing!

    thanks Michael -
    I think you hit the nail right on the head . 
    We got lucky last 3-4 years renting it out .


    But it's been dry for a few months now .. the attractive thing about STR for this property is we can go back there and stay in it .

    Right now just paying rent and heat on an empty house ..

    On the STR subject have you ever heard of " Evolve " for short term rental property management ?

    thanks again  for the feedback 

    Christian 

    0Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    1y

    Christian if you do a search For Evolve on this forum you can see reviews and experiences of others.. Maybe best to use a local property management company which values you a lot:)

    This is an older post but may shed light

    https://www.biggerpockets.com/forums/52/topics/1089211-evolv...

    0Reply
  • Christian Gibbs
    OP
    Member since 2022 · 32 posts · 14 votes
    1y
    Quote from @John Mason:

    Christian if you do a search For Evolve on this forum you can see reviews and experiences of others.. Maybe best to use a local property management company which values you a lot:)

    This is an older post but may shed light

    https://www.biggerpockets.com/forums/52/topics/1089211-evolv...

    thanks John… when i was speaking with someone from Evolve O asked if they advertised on Bigger Pockets and the answer was no.. i did go to some of those forums .. thank you
    0Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    1y

    @Christian Gibbs free signup on airdna will give you this information



    Who are the largest property managers?

    1Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    1y
    0Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    1y

    Christian above is an example

    0Reply
  • Christian Gibbs
    OP
    Member since 2022 · 32 posts · 14 votes
    1y
    Quote from @John Mason:

    0Reply
  • Christian Gibbs
    OP
    Member since 2022 · 32 posts · 14 votes
    1y
    Quote from @John Mason:

    Christian above is an example

     thanks @John Mason . After you recommended that I went and signed up .. I saw the biggest property managers in the area and I think the one we have been using for long term came up on that list unless “ Home Sweet Home “ is a national property management co. like Evolve and the others .. Still digging / research.

    Much appreciated !

    C.

    0Reply
  • William HooFatt
    Homeowner · Member since 2024 · 14 posts · 14 votes
    1y

    List Your Place - Travel Nurse Housing

    https://www.travelnursehousing.com/ListYourPlace?utm_source=...

    I think the nearest Hospital is 26-30 minutes away - maybe too far for a tired nurse to get off her shift and drive sleep.

    Does the salmon run go thru that river in the fall?  Set up some bunks and a coffee maker, stock the fridge with some muffins and eggs and offer up as a fishing camp?  Maybe leave a kayak for guest to use (have them sign waivers in case of accidents).

    Get some old furniture, some bicycles to loan and make a bed and breakfast!?

    0Reply
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